jQuery(document).ready(function($){ $('form').submit(function(e){ // validate for checkboxes if ( $('input[name=optIn1]:visible').length ) { if( !$('input[name=optIn1]:checked').length ) { alert('Please tick the "Marketing Opt-in" checkbox to submit.'); e.preventDefault(); return false; } } if ( $('input[name=PrivacyPolicy]:visible').length ) { if( !$('input[name=PrivacyPolicy]:checked').length ) { alert('Please agree to the privacy policy'); e.preventDefault(); return false; } } }); })
Vendor reduction
Engineering Your Success
Reducing suppliers in the oil and gas industry is an option that more and more oilfield companies and operators will explore as the industry moves towards streamlining costs and improving partnerships through decommissioning

In an industry where managing risk and safety are paramount, firms need reassurance that they are minimising market exposure. Who wants to be in a position where assets fail and can’t be readily replaced? Also, when working in locations around the world, access to skilled, reliable partners can be the difference between getting supplies just in time, or footing the bill for expensive down time.

1. Cost savings
Generating cost reduction is a common driver for streamlining vendor partnerships. By working with fewer partners, it’s typically easier to secure greater control and visibility of spend. Increased business often gives buyers a stronger negotiating position – such as the ability to get ‘more for less’ (volume discounts) or achieve greater economies of scale. 
2. Time savings
Capping the number of suppliers is likely to mean less employee time handling paperwork – orders, deliveries, invoices, schedules and so on. And for engineers and procurement specialists building a specification, it’s natural to expect queries around lead times, materials, performance and the like. The wider the range of partners, the more work, liaison, waiting time and administration can be expected.
3. Improved performance
Great performance may look very different to different businesses; it all depends on the starting point and desired strategy direction. Working with businesses that offer trusted advice (as well as parts and/or systems) can be a great way of moving towards key goals.

For example, if more space and less reliance on inventory are important, asking potential partners how they can help achieve that objective may help to deliver additional unexpected benefits (such as reduced storage costs, or streamlined delivery processes). 
4. Better relationships
At first glance, reducing supplier numbers may seem like a risky strategy – procurers may well be concerned about ‘putting all their eggs in one basket’, especially in markets where there may be limited partner ability to meet a wide range of requirements.

However, in some cases, deeper relationships can develop shared experiences and mutual learning, both critical factors in a turbulent business climate. If requirements may change over time, having access to one or two companies with ‘one stop shop’ capabilities may be a useful tactic; asking open questions about the added value that prospective partners have bought to other customers (including technology transfer) gives companies a chance to show off hidden extras that may otherwise not be brought to the table.

In Parker’s case, for example, the breadth of offer across multiple technologies and markets is significant - covering everything from small-scale components to major bespoke systems in hydraulics, pneumatics, electro-mechanical, hose assembly, tube fittings, filtration, condition monitoring, asset management and battery storage

We recognise that certain technologies will evolve over time, whilst others fall by the wayside; by helping you to transfer emerging technologies and knowledge from multiple markets, you can future-proof your business without necessarily needing to reinvent the wheel. And where collaboration can help reduce costs, be safer, or improve processes, we’ll work with you to do just that - bringing a wealth of knowledge from markets such as automotive, construction, health and life sciences and more. 

Smaller or specialist firms may work with third parties, which may be fine with lines of demarcation confirmed and transparency over issues such as lead times, project mark-up and so on; again, it depends what outcomes are important to your team.
6. Location-appropriate access
Access to the assets and advice appropriate to business location is usually key. If you have one location in one country, local support may be the strongest driver; but if you’re managing projects in Norway, Nigeria, Canada and China, having global partners with strong distribution and support networks may be non-negotiable.

Parker and it's partners work across the globe, so you can be assured of continuity of supply and support in multiple territories.
5. Brand protection
Whilst some people might think that reducing the number of suppliers is risky, that doesn’t always hold true. A critical factor to consider is brand longevity and trust – do the companies that you plan to do long-term business with have staying power? Are they stable, positive partners in your industry? Do their products and systems have a reputation for quality? What about industry-specific certifications? 

Having access to people who will still be in the market tomorrow is vital to maintain trust and reputation. Parker is a Fortune 250 company, with a 100-year history and we’re looking forward to our next centennial already!